This blog is mainly about the spectacular train wreck at The Sacramento Bee and its parent company, the McClatchy Company. But I also post about current events, the Iraq and Afghanistan wars, politics, anything else that grabs my attention. Take a look around this blog, hope you enjoy it.

Friday, June 26, 2009

Sell-off!... McClatchy shares drop 32 percent

Friday, MNI lost 32.4% of its value in a single session, closing down 22 to 46 cents. It was as if traders couldn’t dump MNI fast enough. Volume soared to 5.5 million shares -- five times the normal turnover in a session.

Most of the plunge happened in the last half hour of trading, which seems odd because news about the poor response to the debt swap was known early this morning.

Update: From comments: "Three and a Half Million plus shares sold at close." Wow!...

"Fitch has believed that McClatchy has an untenable capital structure relative to the prospects for its future cash flow generation. The ratings reflect Fitch's belief that default is imminent or inevitable."

Another million shares transferred after the close at 56 cents, up 10 from the close. I doubt it's heading towards 3:48's target price, though.

No it didn't. The total number of shares traded after hours was 664,880 and the price went from .46 to .56 on a grand total of 40,000 shares bought after an additional 371,421 had taken it back down to .46 from .52.

How do you drop 6 cents on almost 400,000 sold, but gain 10 cents on only 40,000 shares purchased?

------This is one of those rare occasions that the floor is higher than the price. Since it has not traded on the open market, the floor remains .50 cents, even though the actual price is .46.

At this point in MNI's history though, it is all pretty much irrelevant. McClatchy effectively set their own valuation with the bond offering at between .18 and .33 cents. Anyone paying more is speculating or day trading.

When, oh when, will Gary Pruitt be fired? His latest plan to try to hoodwink bond holders into switching out of bonds and into stock fell 91% short of plan. It is so obvious to me that everything Pruitt has done to this company in the past two years has had only negative impact on the stock price.

If an advertising sales rep missed their goal by 91%, they would and should be fired. If a reporter missed 91% of the stories on their beat, they would and should be fired. If a carrier delivered the paper to only 9% of subscribers on her route, she would and should be fired. Gary Pruitt's most important role as CEO of MNI is to increase shareholder value and wealth. The stock price of MNI is off more than 91% in the past 2 years. How, and why, is this guy allowed to show up at work each day. HE SHOULD BR FIRED TODAY!!!!!

Anyone here got a solid idea to share on what really needs to be done to increase shareholder value? Seems all I see is much critique of the past and few ideas and little conversation on what really needs to be done.

Anyone here got a solid idea to share on what really needs to be done to increase shareholder value?

There is only one possible way and eliminating current shareholder value is the result of doing so. Bankruptcy with court supervised oversight in restructuring without the current leadership and control by a single family is the only way to save the company.

This is what Pruitt et al are fighting at any cost as it excludes them.

But I did not expect anything other than biased comments on this blog.

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What does this mean to you Mr Genius?(BTW, it didn't come from this blog)

"Fitch has believed that McClatchy has an untenable capital structure relative to the prospects for its future cash flow generation. The ratings reflect Fitch's belief that default is imminent or inevitable."

Now, seriously. Do you have a lot of money tied up in MNI? I am thinking that you must because your portrayal is down right dishonest.

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